Two weeks ago, we introduced the new feature of our blog and first discussed the Pag-IBIG housing loan. With its mandate to provide low-cost and socialized house and lot packages/condominium units, Pag-IBIG grants housing loan opportunities to its members. But, is it the better housing loan option for you?
Check out the data we have compiled below as of January 2018, and know the basic features of the Pag-IBIG housing loan as compared to the home loan offered by five of the largest private banks in the Philippines.
| Housing Loan Features | Pag-IBIG | BDO | Metrobank | BPI | PNB | Security Bank |
|---|---|---|---|---|---|---|
| Eligibility Requirement | A Pag-IBIG member under the Pag-IBIG I, Pag-IBIG II or Pag-IBIG Overseas Program (POP) for at least 24 months (see further qualifications) Not more than 65 years old at the date of loan application and must be insurable; provided further that he is not more than 70 years old at loan maturity | A Filipino citizen or a foreigner (see Visa requirements) At least 21 years old but not exceeding 65 years old upon loan maturity | A Filipino citizen or a foreigner with permanent resident visa for the Philippines At least 21 years old at loan application and not older than 65 years old upon loan maturity | A Filipino A foreigner married to a Filipino citizen (subject to specific documentary requirements) A foreigner with issued immigrant / resident visa (subject to specific documentary requirements) but solely for the acquisition of a condominium unit only | Filipino citizens Natural-born Filipinos who have lost their Filipino citizenship (up to a maximum lot area of 1,000 sq.m. only) At least 21 years of age and must not be more than 65 years of age upon loan maturity | A resident Filipino At least 21 years old and not more than 65 years upon loan maturity |
| Minimum Monthly Income Requirement | P12,000.00 under the Affordable Housing Program | P50,000.00 | P30,000.00 | P40,000.00 | P30,000.00 | P50,000.00 |
| Interest Rate | As low as 3% under the Affordable Housing Program For the regular loan: 5.500% – 1 year 6.500% – 3 years 7.270% – 5 years 8.035% – 10 years 8.585% – 15 years 8.800% – 20 years 9.050% – 25 years 10.000% – 30 years | 5.50% – 1 year 6.50% – 2 to 3 years 6.88% – 4 to 5 years 8.50% – 6 to 10 years 11.00% – 11 to 15 years 11.50% – 16 to 20 years | 5.50% – 1 year 6.25% – 2 years 6.25% – 3 years 6.88% – 4 years 6.88% – 5 years 8.50% – 6 to 10 years 10.50% – 11 to 15 years | 5.25% – 1 year 6.00% – 2 years 6.25% – 3 years 6.88% – 4 years 6.88% – 5 years 8.50% – 6 to 10 years 9.50% – 11 to 15 years 11.50% – 16 to 20 years | 5.75% – 1 year 6.50% – 2 to 3 years 6.75% – 4 to 5 years 8.50% – 10 years 10.25% – 15 years 10.75% – 20 years | 5.25% – 1 year 6.25% – 2 to 3 years 7% – 4 to 5 years 8% – 6 to 10 years 9% – 11 to 15 years |
| Maximum Payment Term | 30 years | 20 years | 25 years | 25 years | 20 years | 20 years |
For more information about the Pag-IBIG housing loan availment, refer to the Approved Citizen’s Charter of Pag-IBIG. Meanwhile, if you want to know more about the Affordable Housing Program of Pag-IBIG, you may download this brochure instead: Q&A on Pag-IBIG Affordable Housing Program
Please be advised that the loan amount granted by Pag-IBIG or any bank and the approval of the loan itself will also depend on certain requirements. These include the borrower’s capacity to pay, the status of his employment or business (if self-employed), the value of the desired property, the lending institution’s own credit policies and procedures, among many other considerations.
Hence, the best thing to do will be to assess your capacity first before deciding on a loan. Can you really commit to a real estate investment? Can you pay the monthly amortization on time? If worse comes to worst, can you still finish paying your housing loan? After your personal assessment, you can go to your preferred bank or Pag-IBIG to request for a formal pre-qualification. An expert will help you evaluate your financial capacity and let you know if the housing loan availment should be your next step.
For the meantime, you can use the loan affordability calculator of each bank as well as Pag-IBIG’s to help you with your housing loan decision-making.
Pag-IBIG Fund Housing Loan Affordability Calculator
BDO Home Loan Calculator
Metrobank Home Loan Calculator
BPI Housing Loan Calculator
PNB Mortgage Calculator
Security Bank Housing Loan Calculator
SubNet Construction’s Housing Loan Option
As for the houses we build here at SubNet Construction, we both accept Pag-IBIG and bank financing. However, being a general contractor and not a developer, we cannot assist you in your Pag-IBIG loan application as it will be an individual process. Thus, you or your representative have to go to any Pag-IBIG office near you to process your housing loan application.
If you are an Overseas Filipino Worker (OFW) though, we can assist you in processing your construction loan from the bank by getting the required documents, coordinating with the bank representative, and monitoring the process of your loan.
Interested to know more?
Together, let us design dreams and build realities!
Data Sources:
Pag-IBIG website | BDO website | Metrobank website | BPI website | PNB website | Security Bank website